In every business environment, there exist consumers of the goods or services. The customers may be the immediate consumer or retailers. A successful business entrepreneur should establish a good rapport with their customers, and understanding their customers’ behaviour is a key role.
For Best Buy, listening to their customers’ complains and understanding their experience as well as offering good services has seen a massive gain to their company. Consumers always have many things to look for in a potential seller. These include the branding of goods, store navigability, employees’ attitude, the price of commodities, and customers’ reception among others. Customers always want a progressive retailer.
After the tornado, Best Buy did not despair but instead added the stock and lowered the price. This attracted a lot of customers and increased sales. This resulted in increased revenue. The company eliminated commissioned sales representative, customers’ ideas, and they realised a tremendous growth in the sales and revenue. However, the profit declined. Understanding what customers want in technology enabled Best Buy to achieve a perfect sale of its goods.
Online sales and sale of goods as a whole system helped them realise massive profits. Understanding that customers are more attentive and sensitive in a competitive environment facilitated changes in the marketing approach. Best Buy started offering extra services like delivery and installation; a strategy that attracted many customers.
The behaviour of men and women differ according to Brandt. The fact that their stores were men oriented in terms of merchandise, appearance and staffing made most female fail to embrace the company’s experience. Collecting and analysing data on the females’ purchasing power enabled Best Buy to put into consideration the impact of females in the success of the business.
By personalising the customers experience and establishing a strong Relationship, Best Buy gets to listen to the customer and answer their question. The expansion of women market is due to their understanding of what women would want in the electronic market. This has reduced the number of workers leaving the organization. Proper knowledge on women trends has seen the expansion of the market share. This mainly deals in women products and services.
By adopting the theory of customer centricity, Best Buy management was able to understand its customers’ needs and behaviour. This idea created employment opportunities for many people who qualified to be sales associates. In the short run of using customer centricity approach, Best Buy received impressive reports of increased sales that exceeded the chain average.
However, this idea brought in extra cost in order for it to be applied. The conversion of many Best Buy stores to meet the customer centricity theory led to the increase in the cost of operations and reduced profits. Therefore, the Seldon’s theory brought a negative impact in the long run.
Men typically love the technology behind the Best Buy products and like to apply it and interact with the systems. They like practising the systems applicability before making purchases. In fact, they demand the best service. On the other hand, women are not highly sensitive when purchasing items. They only need to hear their expectation, understand how to use them, and they are good to go.
One of the criteria used for objective evaluation by the female customers of Best Buy is the relevance of the product. They consider the appropriateness of the system in addressing the problem. For instance, in the ‘Jill’ segment, provided the system will enrich her children’s live with technology and entertainment, she will go for it.
The effectiveness of the good is another criterion used by women. They evaluate it on the basis of achieving the objective of entertaining and enriching their children’s live. Another criterion used is the efficiency of the product. She can consider the cost of acquiring the good and whether it can give extra effects with the same cost.
Understanding the behaviour of a customer and satisfying their need is a challenge to any business. Some consumers would have needs that have a negative impact to the business. Some would wish for prices to go down. Putting such customers in the forefront would lead to the failure of the business.
To address this, Best Buy has to put into consideration the idea of rating customers in order to know the impact that each type has to the business. There are customers who have a good summary score and bring good revenue. Others have a good summary score, potentially high revenues and are candidates for cross selling and up selling. There are also at-risk customers who have a low score, bring good revenue but demand decisive interventions.
To put into considerations are the dangling customers. These are customers who have low scores and low revenues. Such customer can be easily abandoned, and the focus shifted to customers who bring positive effect to the business. Therefore, the challenge for Best Buy is to identify potential customers who are worth the centricity. This will facilitate the continuity of the business.